What are the capital expenditure claims I could make to maximise my purchase cost base and thereby minimise my capital gains tax liability?

Q.

I purchased a home unit as an investment rental property in 1998. I have just sold this property with a capital gain. Can you outline the legitimate capital expenditure claims I could make to maximise my purchase cost base and thereby minimise my capital gains tax liability? Are council rates, landlords insurance and strata fees eligible for inclusion?

Your accountant is the appropriate person to assist you but you cannot add to the cost base items such as rates and fees that would normally have been claimed each year when you did your tax return. Capital items can be added to the cost base, but these are usually uncommon if the property is a strata title unit. One of the best ways to minimise your capital gains tax is to reduce your income in the year of sale if you are in a position to do that.